Craft / eBay Business Confusion

USA Discussion in 'Businesses / Corporations' started by inbigd, Apr 15, 2018.

  1. inbigd

    inbigd

    Joined:
    Apr 15, 2018
    Messages:
    1
    Likes Received:
    0
    We started selling on eBay 4 yrs. ago and decided to try it as a business. To be honest, we've failed, lost money each year. In addition, my wife does crafts and has tried to sell these at a few craft events and on eBay. As per advice of a CPA we decided to include her craft purchases (expenses) such as magazines, cutters, machines, etc. and the minimal income from craft sales into the business. We have lost money each year on this also.

    A CPA did my taxes for 2014, 2015, and 2016 (they won't be this year). A loss was claimed all 3 yrs. My concern is that we have not ever made a profit, I feel that we're on the line on the craft stuff between hobby and business and that if we keep claiming losses (we lost money in 2017 also) we may get audited. I've never had a business, have made every mistake in the book and now I'm ready to really take it serious. And to be honest, I want to pay my fair share.

    I thought about creating a website for the business, and doing other stuff to promote it but I'm torn on how to deal with 2017.
    Should I close it down and start over and not claim losses in 2017 or claim the losses and take a chance in addition to handling things more diligently so we can eventually make money and not get in trouble and more importantly, be honest?
     
    inbigd, Apr 15, 2018
    #1
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.